The reduction of countervailing duties from 6.46% to 1.34% for the period of November 10, 2020 – December 31, 2021 marks positive news for Vietnamese tire exporters to the United States, following the latest administrative review by the U.S. Department of Commerce (DOC).
In June 2020, the U.S. officially launched anti-dumping and countervailing investigations on imported passenger vehicle and light truck tires. By July 2021, the U.S. announced duties of 0–22.27% for anti-dumping and 6.23–7.89% for countervailing measures on Vietnamese tires. However, most Vietnamese companies—accounting for 95.5% of total tire exports to the U.S.—were found not to be dumping, meaning their products were exempt from anti-dumping duties. Overall, Vietnam maintained the lowest combined anti-dumping and countervailing rates among the investigated countries and territories, compared with South Korea (14.72–27.05%), Taiwan (20.04–101.84%), and Thailand (14.62–21.09%).
On September 6, 2022, the DOC initiated the first administrative review of countervailing duties on Vietnamese tires for the period from November 10, 2020, to December 31, 2021, following a request from a Vietnamese exporter. On September 29, 2023, the DOC released its final conclusion, after considering submissions from relevant stakeholders including the Vietnamese Government, exporters, U.S. domestic industry (petitioners), and the U.S. Department of Treasury. The DOC determined that the company in question did not receive any specific subsidies from the Vietnamese Government under 26 out of 27 alleged programs.
For the remaining program—currency undervaluation—based on information from the U.S. Treasury, the DOC calculated a final countervailing duty rate of 1.34% for November 10–December 31, 2020 (an adjustment from the preliminary 1.26% due to a calculation error) and 0% for January 1–December 31, 2021. Thus, the final countervailing duty rate stands at 1.34%, a substantial decrease from the previously applied 6.46%.
Furthermore, on September 11, 2023, the DOC initiated the second administrative review of countervailing duties on Vietnamese tires for the review period from January 1, 2022, to December 31, 2022. Within 35 days from the announcement (expected October 16, 2023), the DOC will select mandatory respondents based on export volume data from the U.S. Customs and Border Protection (CBP). Parties can withdraw their review requests within 90 days (by December 10, 2023). The final results of this review are expected by July 31, 2024.
According to U.S. regulations, the DOC must decide within 45 days whether to initiate a review of Vietnam’s market economy status, and issue a conclusion within 270 days of receiving Vietnam’s submission. Recognition as a market economy would be a significant advantage for Vietnam’s production and export sectors, especially given the importance of the U.S. as a key export market.